ISLAMABAD – A proposal to ‘grey list’ Pakistan was believed to beco-sponsored by the US, UK in the 37-member body, Financial Action TaskForce.

China is believed to have opposed the proposal. But during the FATFmeetings at Paris from Sunday to Tuesday, Russia and Turkey are alsobelieved to have supported China in opposing the proposal.

As votes of three members are needed to defeat FATF proposals which areapproved unanimously, the US-led group did not move the motion for votingon the FATF plenary session.

If Pakistan would have been placed on the ‘grey list’, the cost of doingbusiness in the country would have increased manifold, besides drying upthe foreign investment.

It would have worsened the country’s macroeconomic position which isalready under pressure due to a widening trade deficit and falling foreignexchange reserves.

Pakistan had earlier been on the FATF ‘grey list’ from 2012 to 2015,following a detailed assessment by APG in 2010 and lack of follow-up actionby Islamabad to curb terror financing.

Pakistan Foreign Minister Khawaja Asif tweeted on Tuesday, “Our effortspaid, FATF Paris 20 Feb meeting conclusion on the US-led motion to putPakistan on watch list.. No consensus for nominating Pakistan, proposingthree months pause and asking APG [Asia Pacific Group] for another reportto be concluded in June”.

Asif was in Moscow when he posted on Twitter. Worried about the FATFmeeting, Islamabad had indulged in heavy diplomatic lobbying this month,sending ministers and senior officials to various foreign capitals.

To bolster its case, the Pakistan government had promulgated the ordinancethat allowed the government to outlaw all organisations that are declaredterrorists under UN Security Council resolutions.

This had led to action, including the government notification to to freezeand take over the assets of Hafiz Saeed’s Jamaat-ud-Dawa (JuD) and itsrelated charity, Falah-e-Insaniyat Foundation (FiF).